One of the Three Types of Loans in the Fed

question 31

Short Answer

One of the three types of loans in the Fed Funds market,__________________ loans are longer-term Fed funds contracts lasting several days,weeks or months,often accompanied by a written contract.

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Definitions:

Induce

To lead or move by persuasion or influence, often to bring about or provoke a specific action or outcome.

Government Securities

Government securities are financial instruments issued by the government to finance its expenditures, offering a fixed return and including treasures, bonds, and bills.

Time Deposits

Money deposited in a financial institution that cannot be withdrawn for a certain term or period of time without incurring penalties.

Large Banks

Financial institutions with a significant amount of total assets, offering a wide range of financial services.